Oil Rises on U.S.-Iran Strait of Hormuz Tensions

Oil prices pushed higher Thursday, CNBC reported, as markets remained unsettled by escalating tensions between Washington and Tehran. Traders kept a close eye on the Strait of Hormuz oil prices and supply risks stemming from the ongoing U.S.-Iran conflict.

Crude Benchmarks Advance in Volatile Session

International benchmark Brent crude futures for July added around 0.91%, reaching $102.19 a barrel. U.S. West Texas Intermediate for June climbed 1.23% to $96.25 per barrel. Both contracts swung within a wide range as fresh diplomatic signals emerged from multiple parties throughout the session.

Citi U.S. equity strategist Scott Chronert cautioned on CNBC’s Squawk Box that a prolonged conflict carries broad economic consequences. He said the length of the standoff matters for growth forecasts across many market sectors. He also noted it complicates Federal Reserve thinking on interest rates if elevated energy costs persist.

Trump Issues Stark Warning to Tehran

President Donald Trump used his Truth Social platform Wednesday to deliver a stark message to Iran. He said U.S. military operations under “Operation Epic Fury” would cease if Tehran agreed to terms already on the table. He added, however, that if Iran refused, bombing would resume at a greater intensity than previously seen.

Trump also indicated that compliance would lead to a lifting of the U.S. naval blockade of Iranian ports in the Gulf of Oman. That step, he wrote, would reopen the Strait of Hormuz to all commercial traffic, including Iranian vessels.

Background: Talks Fragile Despite Reported Progress

Axios had earlier reported that U.S. and Iranian negotiators were close to agreeing on a one-page, 14-point memorandum of understanding. The document was described as a potential framework for ending the war and beginning further formal negotiations.

Iran’s Foreign Ministry spokesperson Esmaeil Baqaei said Wednesday that Tehran was still reviewing the proposal. He indicated Iran would send its formal response through mediators in Pakistan. In a separate post, Baqaei appeared to invoke International Court of Justice language, stressing that genuine negotiations require good faith and cannot constitute coercion or dictation.

Hormuz Reopening Seen as Immediate Priority

Former U.S. Ambassador to Oman Marc Sievers told CNBC that unblocking the Strait of Hormuz has been the central near-term objective for all parties. He described a backlog of tankers carrying oil and other commodities that have been unable to transit freely. He also noted that any resolution must ensure Iran’s Islamic Revolutionary Guard Corps cannot levy tolls on passing vessels.

Markets are expected to remain sensitive to any new statements from either government in the coming sessions.

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